You Be the Judge

Injured Worker Wins Settlement From Employer

A judge ruled an employer erred when it terminated an injured worker's benefits because he failed to report proceeds from the sale of a horse.
By: | March 10, 2017 • 3 min read

An employee of A.W. Chesterton suffered a work-related accident while picking up a box of parts. The worker received workers’ compensation benefits, and he was required to fill out monthly questionnaires regarding his income from any business enterprise. The worker indicated that he did not receive any income.

The worker sold a horse for $3,500, and he did not indicate that he earned income on the forms. Chesterton terminated the worker’s benefits, claiming that the sale was part of a business enterprise and that the worker committed fraud when he denied being a part of any business on his forms.


The worker explained that he had owned horses as a hobby since he was five years old, and he was 76 at the time of trial. He said that he owned as many as 42 horses but decreased that number to seven after his accident.

Chesterton was aware that the worker raised horses while he was employed and after the accident. The worker admitted that he sold a horse but stated that it was part of his hobby of raising horses rather than any business venture. He testified that the horse he sold for $3,500 was purchased for $20,000 19 years before. He stated that prior to that sale, he last sold a horse four years before.

The workers’ compensation judge found that Chesterton failed to carry its burden of proof to establish fraud and awarded the worker supplemental earnings benefits, penalties, and attorney’s fees. Chesterton appealed.

Did the WCJ err when it determined that the employer failed to establish fraud?

  • A. No. The worker did not willfully make false statements for the purpose of obtaining workers’ compensation benefits.
  • B. Yes. The worker was involved in raising and selling horses as a business enterprise.
  • C. Yes. The worker engaged in physical labor while raising horses.

How the Court Ruled

B is incorrect. The court found that the worker was involved in raising horses as a hobby and that the sale of the horse was a sale of a personal asset. Chesterton’s adjustor admitted that had the worker sold personal property at a garage sale, those proceeds would not be material to his workers’ compensation claim.


C is incorrect. The worker explained that any physical work done such as cleaning stalls and feeding the animals was done out of his desire to have horses as a hobby rather than a means of income.

A is correct. In Johnson v. A.W. Chesterton, et al., No. 16-807 (La. Ct. App. 02/01/17), the Louisiana Court of Appeal held that the worker did not commit fraud when he failed to note the proceeds from the sale of the horse on his forms dealing with income from any business enterprise.

The court stated that the WCJ’s reasonable evaluations of credibility and reasonable inferences of fact should not be disturbed unless manifestly erroneous.


Here, there was no manifest error in the WCJ’s findings that the worker did not willfully make false statements for the purpose of obtaining workers’ compensation benefits.

The court also found that the WCJ properly awarded penalties and attorney’s fees. The court awarded the worker additional attorney’s fees for work performed on appeal.

Editor’s note: This feature is not intended as instructional material or to replace legal advice.

Christina Lumbreras is a Legal Editor for Workers' Compensation Report, a publication of our parent company, LRP Publications. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Janet Sheiner, VP of risk management and real estate at AMN Healthcare Services Inc., sees innovation as an answer to fast-evolving and emerging risks.
By: | March 5, 2018 • 4 min read

R&I: What was your first job?

As a kid, bagging groceries. My first job out of school, part-time temp secretary.

R&I: How did you come to work in risk management?

Risk management picks you; you don’t necessarily pick it. I came into it from a regulatory compliance angle. There’s a natural evolution because a lot of your compliance activities also have the effect of managing your risk.

R&I: What is the risk management community doing right?


There’s much benefit to grounding strategic planning in an ERM framework. That’s a great innovation in the industry, to have more emphasis on ERM. I also think that risk management thought leaders are casting themselves more as enablers of business, not deterrents, a move in the right direction.

R&I: What could the risk management community be doing a better job of?

Justified or not, risk management functions are often viewed as the “Department of No.” We’ve worked hard to cultivate a reputation as the “Department of Maybe,” so partners across the organization see us as business enablers. That reputation has meant entertaining some pretty crazy ideas, but our willingness to try and find a way to “yes” tempered with good risk management has made all the difference.

Janet Sheiner, VP, Risk Management & Real Estate, AMN Healthcare Services Inc.

R&I: What was the best location and year for the RIMS conference and why?

San Diego, of course!  America’s Finest City has the infrastructure, Convention Center, hotels, airport and public transportation — plus you can’t beat our great weather! The restaurant scene is great, not to mention those beautiful coastal views.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

The emergence of risk management as a distinct profession, with four-year degree programs and specific academic curriculum. Now I have people on my team who say their goal is to be a risk manager. I said before that risk management picks you, but we’re getting to a point where people pick it.

R&I: What emerging commercial risk most concerns you?


The commercial insurance market’s ability to innovate to meet customer demand. Businesses need to innovate to stay relevant, and the commercial market needs to innovate with us.  Carriers have to be willing to take on more risk and potentially take a loss to meet the unique and evolving risks companies are facing.

R&I: Of which insurance carrier do you have the highest opinion?

Beazley. They have been an outstanding partner to AMN. They are responsive, flexible and reasonable.  They have evolved with us. They have an appreciation for risk management practices we’ve organically woven into our business, and by extension, this makes them more comfortable with taking on new risks with us.

R&I: Are you optimistic or pessimistic about the U.S. health care industry and why?

I am very optimistic about the health care industry. We have an aging population with burgeoning health care needs, coupled with a decreasing supply of health care providers — that means we have to get smarter about how we manage health care. There’s a lot of opportunity for thought leaders to fill that gap.

R&I: Who is your mentor and why?

Professionally, AMN Healthcare General Counsel, Denise Jackson, has enabled me to do the best work I’ve ever done, and better than I thought I could do.  Personally, my husband Andrew, a second-grade teacher, who has a way of putting things into a human perspective.

R&I: What have you accomplished that you are proudest of?

In my early 20s, I set a goal for the “corner office.” I achieved that when I became vice president.  I received a ‘Values in Practice’ award for trust at AMN. The nomination came from team members I work with every day, and I was incredibly humbled and honored.

R&I: What is your favorite book or movie?

The noir genre, so anything by Raymond Chandler in books. For movies,  “Double Indemnity,” the 1944 Billy Wilder classic, with insurance at the heart of it!

R&I: What is your favorite drink?


Clean water. Check out for how to help people enjoy clean, safe water.

R&I: What’s the best restaurant at which you’ve eaten?

Liqun Roast Duck Restaurant in Beijing.

R&I: What is the most unusual/interesting place you have ever visited?

China. See favorite restaurant above. This restaurant had been open for 100 years in that location. It didn’t exactly have an “A” rating, and it was probably not a place most risk managers would go to.

R&I: What is the riskiest activity you ever engaged in?

Eating that duck at Liqun!

R&I: If the world has a modern hero, who is it and why?

Dr. Seuss who, in response to a 1954 report in Life magazine, worked to reduce illiteracy among school children by making children’s books more interesting. His work continues to educate and entertain children worldwide.

R&I: What do your friends and family think you do?

They’re not really sure!

Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]